---
title: "China Fines, Seizes USD2.5 Million From Five Employees of Changan Auto, Huawei for Insider Trading"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287589686.md"
description: "(Yicai) May 26 -- Five employees of Changan Automobile and Huawei Technologies were fined and had CNY16.7 million (USD2.5 million) confiscated for insider trading related to the cooperation agreement the pair signed back in 2023."
datetime: "2026-05-26T06:25:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287589686.md)
  - [en](https://longbridge.com/en/news/287589686.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287589686.md)
---

# China Fines, Seizes USD2.5 Million From Five Employees of Changan Auto, Huawei for Insider Trading

(Yicai) May 26 -- Five employees of Changan Automobile and Huawei Technologies were fined and had CNY16.7 million (USD2.5 million) confiscated for insider trading related to the cooperation agreement the pair signed back in 2023.

During the two and a half months before the memorandum of understanding on investment cooperation was signed, five employees of Changan Auto and Huawei preemptively acquired CNY61 million of Changan Auto’s shares, ultimately realizing a profit of over CNY4 million (USD589,490), the China Securities Investor Services Center announced on May 22.

After Changan Auto unveiled it signed a deal with a well-known technology company -- later confirmed to be Huawei -- on Nov. 26, 2023, its stock price soared by the 10 percent exchange-imposed daily trading limit for two days. The stock had risen since Nov. 23 because of rumors about the partnership.

The first staffer, who purchased Changan Auto shares between Oct. 13 and Nov. 6, realizing gains of CNY2.1 million, was subjected to confiscation and fines of CNY12.6 million. Two others, who bought shares from Nov. 6 to 14 and profited CNY1 million in total, faced confiscation and fines of nearly CNY4.1 million. The remaining two were fined CNY1.5 million and CNY1.6 million, respectively.

This case revealed significant gaps in the management of insider information within Changan Auto, the ISC noted, adding that the mechanism for maintaining confidentiality around major issues was inadequate, resulting in the information being disseminated online prior to the official announcement.

Changan Auto’s shares \[SHE: 000625\] were trading down 1.3 percent at CNY8.27 (USD1.21) as of 2.05 p.m. in Shenzhen today. In November 2023, they reached a high of CNY21.14 (USD3.11).

A total of 218 insider trading cases were discovered last year, up 22 percent from 2024, according to data from the China Securities Regulatory Commission. Moreover, there were 85 market manipulation cases, up 20 percent in the period. Regulatory authorities said that the increase in the number of cases is mainly due to enhanced big data monitoring capabilities rather than an actual rise in violations.

Editor: Futura Costaglione

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